Alternatives investor Octopus Healthcare has raised around £58 mln (€66 mln) from institutional investors, the company has announced.

 

Ben Penaliggon, director of Octopus Healthcare

Ben Penaliggon, Director of Octopus Healthcare

The capital is to be ploughed into the care home sector in the UK, which is currently attracting high interest from investors, a company representative told PropertyEU. Demand for residential facilities for the elderly is growing due to an ageing population, but there is a real estate supply shortage in the market.

Welcoming the funding from new and existing investors, Ben Penaliggon, director of Octopus Healthcare, said: ‘At a time when some sectors are experiencing challenges and uncertainty, healthcare continues to attract institutional investment. Octopus Healthcare continues to build strong partnerships within the care home sector, driven by a commitment to creating the exceptional healthcare facilities this demographic of society needs.’

Hiti Singh, head of institutional investment at Octopus, said: ‘Institutional investors are increasingly looking for alternative asset classes to expand or diversify their portfolios. Healthcare real estate offers a compelling combination of attractive fundamentals driven by an ageing population and long-term income, together with the social benefit of providing first class and modern accommodation for elderly people needing care.’

Octopus Healthcare has racked up €308 mln of transactions in the UK elderly care home sector in the last 12 months, via a mix of standing investments, forward fundings and forward commitment acquisitions. Octopus group - of which Healthcare is part - controls a total of €8.8 bn funds under management, including €1.96 bn of institutional funds.